[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3768 Received in Senate (RDS)]
109th CONGRESS
1st Session
H. R. 3768
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
September 15, 2005
Received
_______________________________________________________________________
AN ACT
To provide emergency tax relief for persons affected by Hurricane
Katrina.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Katrina Emergency Tax Relief Act of
2005''.
SEC. 2. DESIGNATION AS EMERGENCY REQUIREMENT.
Any provision of this Act causing an effect on receipts, budget
authority, or outlays is designated as an emergency requirement
pursuant to section 402 of H. Con. Res. 95 (109th Congress).
TITLE I--GENERAL TAX RELIEF PROVISIONS
SEC. 101. EXTENSION OF REPLACEMENT PERIOD FOR NONRECOGNITION OF GAIN.
Clause (i) of section 1033(a)(2)(B) of the Internal Revenue Code of
1986 shall be applied by substituting ``5 years'' for ``2 years'' with
respect to property which--
(1) is located in an area determined by the President to
warrant individual or individual and public assistance from the
Federal Government under the Robert T. Stafford Disaster Relief
and Emergency Assistance Act by reason of Hurricane Katrina,
and
(2) is compulsorily or involuntarily converted as a result
of such hurricane,
but only if substantially all of the use of the replacement property is
located in any such area.
SEC. 102. SUSPENSION OF LIMITATIONS ON CHARITABLE CONTRIBUTIONS FOR
RELIEF EFFORTS RELATED TO HURRICANE KATRINA.
(a) In General.--Except as otherwise provided in subsection (b),
qualified disaster contributions shall not be taken into account for
purposes of subsections (b) and (d) of section 170 of the Internal
Revenue Code of 1986.
(b) Treatment of Excess Contributions.--For purposes of section 170
of such Code--
(1) Individuals.--In the case of an individual--
(A) Limitation.--Any qualified disaster
contribution shall be allowed only to the extent that
the aggregate of such contributions does not exceed the
excess of the taxpayer's contribution base (as defined
in paragraph (1) of section 170(b) of such Code) over
the amount of all other charitable contributions
allowed under such paragraph.
(B) Carryover.--If the aggregate amount of
qualified disaster contributions made in the
contribution year (within the meaning of section
170(d)(1) of such Code) exceeds the limitation of
subparagraph (A), such excess shall be added to the
excess described in the portion of subparagraph (A) of
such section which precedes clause (i) thereof for
purposes of applying such section.
(2) Corporations.--In the case of a corporation--
(A) Limitation.--Any qualified disaster
contribution shall be allowed only to the extent that
the aggregate of such contributions does not exceed the
excess of the taxpayer's taxable income (as determined
under paragraph (2) of section 170(b) of such Code)
over the amount of all other charitable contributions
allowed under such paragraph.
(B) Carryover.--Rules similar to the rules of
paragraph (1)(B) shall apply for purposes of this
paragraph.
(c) Exception to Overall Limitation on Itemized Deductions.--So
much of any deduction allowed under section 170 of such Code as does
not exceed the qualified disaster contributions made during the taxable
year shall not be treated as an itemized deduction for purposes of
section 68 of such Code.
(d) Qualified Disaster Contributions.--For purposes of this
section, the term ``qualified disaster contribution'' means any
charitable contribution (as defined in section 170(c) of such Code)--
(1) made during the period beginning on August 28, 2005,
and ending on December 31, 2005, in cash to an organization
described in section 170(b)(1)(A) of such Code (other than an
organization described in section 509(a)(3) of such Code) for
relief efforts related to Hurricane Katrina, and
(2) with respect to which the taxpayer has elected the
application of this section.
In the case of a partnership or S corporation, the election under
paragraph (2) shall be made separately by each partner or shareholder.
SEC. 103. MILEAGE RATE FOR CHARITABLE PURPOSES RELATED TO HURRICANE
KATRINA.
(a) Mileage Rate for Charitable Purposes Related to Hurricane
Katrina.--Notwithstanding subsection (i) of section 170 of the Internal
Revenue Code of 1986, in the case of the use of a vehicle described in
subsection (f)(12)(E)(i) of such section for provision of relief
related to Hurricane Katrina, the standard mileage rate for purposes of
such section shall be 70 percent of the standard mileage rate for
business purposes prescribed by the Secretary for purposes of chapter 1
of such Code which is in effect on the date of the contribution.
(b) Application.--Subsection (a) shall apply only with respect to
contributions made before January 1, 2007.
SEC. 104. EXCLUSION OF CERTAIN CANCELLATIONS OF INDEBTEDNESS.
(a) In General.--For purposes of the Internal Revenue Code of 1986,
gross income shall not include any amount which (but for this section)
would be includible in gross income by reason of the discharge (in
whole or in part) of qualified nonbusiness debt of a qualified
individual by an applicable entity (as defined in section 6050P(c)).
(b) Qualified Nonbusiness Debt.--For purposes of this section, the
term ``qualified nonbusiness debt'' means any indebtedness other than
indebtedness incurred in connection with a trade or business.
(c) Qualified Individual.--For purposes of this section, the term
``qualified individual'' means any natural person who was a resident
(as of August 28, 2005) of, or who owned real property (as of the date
of such discharge) in, any area which is determined by the President to
warrant individual or individual and public assistance from the Federal
Government under the Robert T. Stafford Disaster Relief and Emergency
Assistance Act by reason of Hurricane Katrina.
(d) Exception for Real Property Outside Disaster Area.--Subsection
(a) shall not apply to any discharge of indebtedness to the extent that
real property constituting security for such indebtedness is located
outside of the area described in subsection (c).
(e) Denial of Double Benefit.--The amount excluded from gross
income under subsection (a) shall be applied to reduce the tax
attributes of the taxpayer as provided in section 108(b) of the
Internal Revenue Code of 1986.
(f) Application.--This section shall not apply to discharges after
December 31, 2006.
SEC. 105. SPECIAL RULES FOR MORTGAGE REVENUE BONDS.
(a) In General.--In the case of financing provided with respect to
a qualified Hurricane Katrina recovery residence, subsection (d) of
section 143 of the Internal Revenue Code of 1986 shall be applied as if
such residence were a targeted area residence.
(b) Qualified Hurricane Katrina Recovery Residence.--For purposes
of this section, the term ``qualified Hurricane Katrina recovery
residence'' means any residence if such residence is located in an area
which is determined by the President to warrant individual or
individual and public assistance from the Federal Government under the
Robert T. Stafford Disaster Relief and Emergency Assistance Act by
reason of Hurricane Katrina.
(c) Application.--Subsection (a) shall not apply to financing
provided after December 31, 2007.
SEC. 106. SUSPENSION OF CERTAIN LIMITATIONS ON PERSONAL CASUALTY
LOSSES.
Paragraphs (1) and (2)(A) of section 165(h) of the Internal Revenue
Code of 1986 shall not apply to losses described in section 165(c)(3)
of such Code which are attributable to Hurricane Katrina. In the case
of any other losses, section 165(h)(2)(A) of such Code shall be applied
without regard to the losses referred to in the preceding sentence.
SEC. 107. ADDITIONAL EXEMPTION FOR HOUSING HURRICANE KATRINA DISPLACED
INDIVIDUALS.
(a) In General.--In the case of taxable years of a natural person
beginning in 2005 and 2006, for purposes of the Internal Revenue Code
of 1986, taxable income shall be reduced by $500 for each Hurricane
Katrina displaced individual of the taxpayer for the taxable year.
(b) Limitations.--
(1) Dollar limitation.--The reduction under subsection (a)
shall not exceed $2,000, reduced by the amount of the reduction
under this section for all previous taxable years.
(2) Individuals taken into account only once.--An
individual shall not be taken into account under subsection (a)
if such individual was taken into account under such subsection
by the taxpayer in any prior taxable year.
(c) Hurricane Katrina Displaced Individual.--For purposes of this
subsection, the term ``Hurricane Katrina displaced individual'' means,
with respect to any taxpayer for any taxable year, a natural person
who--
(1) was (as of August 28, 2005) a resident of any area
which is determined by the President to warrant individual or
individual and public assistance from the Federal Government
under the Robert T. Stafford Disaster Relief and Emergency
Assistance Act by reason of Hurricane Katrina,
(2) is displaced from the person's residence located in the
area described in paragraph (1), and
(3) is provided housing free of charge by the taxpayer in
the principal residence of the taxpayer for a period of 60
consecutive days which ends in such taxable year.
Such term shall not include the spouse or any dependent of the
taxpayer.
SEC. 108. SPECIAL RULE FOR DETERMINING EARNED INCOME.
(a) In General.--In the case of a qualified individual, if the
earned income of the taxpayer for the taxable year of such taxpayer
which includes August 28, 2005, is less than the earned income which is
attributable to the taxpayer for the preceding taxable year, the
credits allowed under sections 24(d) and 32 of the Internal Revenue
Code of 1986 may, at the election of the taxpayer, be determined by
substituting--
(1) such earned income for the preceding taxable year, for
(2) such earned income for the taxable year which includes
August 28, 2005.
(b) Qualified Individual.--For purposes of this section, the term
``qualified individual'' means any individual who was (as of August 28,
2005) a resident of any area which is determined by the President to
warrant individual or individual and public assistance from the Federal
Government under the Robert T. Stafford Disaster Relief and Emergency
Assistance Act by reason of Hurricane Katrina.
(c) Earned Income.--For purposes of this section, the term ``earned
income'' has the meaning given such term under section 32(c) of such
Code.
(d) Special Rules.--
(1) Application to joint returns.--For purpose of
subsection (a), in the case of a joint return for a taxable
year which includes August 28, 2005,
(A) such subsection shall apply if either spouse is
a qualified individual,
(B) the earned income which is attributable to the
taxpayer for the preceding taxable year shall be the
sum of the earned income which is attributable to each
spouse for such preceding taxable year, and
(C) the substitution described in such subsection
shall apply only with respect to earned income which is
attributable to a spouse who is a qualified individual.
(2) Uniform application of election.--Any election made
under subsection (a) shall apply with respect to both section
24(d) and section 32 of such Code.
(3) Errors treated as mathematical error.--For purposes of
section 6213 of such Code, an incorrect use on a return of
earned income pursuant to subsection (a) shall be treated as a
mathematical or clerical error.
(4) No effect on determination of gross income.--For
purposes of the Internal Revenue Code of 1986, gross income
shall be determined without regard to any substitution under
subsection (a).
SEC. 109. SECRETARIAL AUTHORITY TO MAKE ADJUSTMENTS REGARDING TAXPAYER
AND DEPENDENCY STATUS.
With respect to taxable years beginning in 2005 or 2006, the
Secretary of the Treasury, or his delegate, may make such adjustments
in the application of the internal revenue laws as may be necessary to
ensure that taxpayers do not lose dependency exemptions or child
credits or experience a change of filing status by reason of temporary
relocations after Hurricane Katrina or by reason of the receipt of
hurricane relief. Any adjustments made under the preceding sentence
shall ensure that an individual is not taken into account by more than
one taxpayer with respect to the same tax benefit.
SEC. 110. WORK OPPORTUNITY TAX CREDIT FOR HURRICANE KATRINA EMPLOYEES.
(a) In General.--For purposes of section 51 of the Internal Revenue
Code of 1986, a Hurricane Katrina employee shall be treated as a member
of a targeted group.
(b) Hurricane Katrina Employee.--For purposes of this section, the
term ``Hurricane Katrina employee'' means any individual who, on August
28, 2005, had a principal place of abode in a Hurricane Katrina
disaster area.
(c) Special Rules for Determining Credit.--For purposes of applying
subpart F of part IV of subchapter A of chapter 1 of such Code to wages
paid or incurred to any Hurricane Katrina employee--
(1) section 51(c)(4) of such Code shall not apply, and
(2) except in the case of an employee of the employer
(within the meaning of section 51 of such Code) on August 28,
2005, or an employee initially hired after such date, section
51(i)(2) of such Code shall not apply.
(d) Application of Section.--This section shall apply only to wages
(within the meaning on section 51(c) of such Code) paid or incurred to
any individual who--
(1) is being hired for a position the principal place of
employment of which is located in a Hurricane Katrina disaster
area, and
(2) who begins work for the employer during the 2-year
period beginning on August 29, 2005.
(e) Hurricane Katrina Disaster Area.--For purposes of this section,
the term ``Hurricane Katrina disaster area'' means any area which is
determined by the President to warrant individual or individual and
public assistance from the Federal Government under the Robert T.
Stafford Disaster Relief and Emergency Assistance Act by reason of
Hurricane Katrina.
TITLE II--PENALTY FREE USE OF RETIREMENT FUNDS IN THE CASE OF NATURAL
DISASTERS
SEC. 201. PENALTY FREE WITHDRAWALS FROM RETIREMENT PLANS UPON FEDERAL
DECLARATION OF NATURAL DISASTER.
(a) In General.--Paragraph (2) of section 72(t) of the Internal
Revenue Code of 1986 (relating to 10-percent additional tax on early
distributions from qualified retirement plans) is amended by adding at
the end the following new subparagraph:
``(G) Distributions from retirement plans upon
federal declaration of natural disaster.--
``(i) In general.--Any qualified disaster-
relief distribution.
``(ii) Aggregate limitation.--The aggregate
amount of payments or distributions received by
an individual which may be treated as qualified
disaster-relief distributions for any taxable
year shall not exceed the excess (if any) of --
``(I) $100,000, over
``(II) the aggregate amounts
treated as qualified disaster-relief
distributions with respect to such
individual for all prior taxable years.
``(iii) Amount distributed may be repaid.--
``(I) In general.--Any individual
who receives a qualified disaster-
relief distribution may, at any time
during the 3-year period beginning on
the day after the date on which such
distribution was made, make one or more
contributions in an aggregate amount
not to exceed the amount of such
distribution to an eligible retirement
plan (as defined in section
402(c)(8)(B)) of which such individual
is a beneficiary and to which a
rollover contribution of such
distribution could be made under
section 402(c), 403(a)(4), 403(b)(8),
or 408(d)(3), as the case may be.
``(II) Treatment of repayments for
distributions from eligible retirement
plans other than iras.--For purposes of
this title, if a contribution is made
pursuant to subclause (I) with respect
to a qualified disaster-relief
distribution from an eligible
retirement plan (as so defined) other
than an individual retirement plan,
then the taxpayer shall, to the extent
of the amount of the contribution, be
treated as having received the
qualified disaster-relief distribution
in an eligible rollover distribution
(as defined in section 402(c)(4)) and
as having transferred the amount to the
eligible retirement plan in a direct
trustee to trustee transfer within 60
days of the distribution.
``(III) Treatment of repayments for
distributions from iras.--For purposes
of this title, if a contribution is
made pursuant to subclause (I) with
respect to a qualified disaster-relief
distribution from an individual
retirement plan, then, to the extent of
the amount of the contribution, the
qualified disaster-relief distribution
shall be treated as a distribution
described in section 408(d)(3) and as
having been transferred to the eligible
retirement plan in a direct trustee to
trustee transfer within 60 days of the
distribution.
``(IV) Application to governmental
section 457 plans.--In determining
whether any distribution is a qualified
disaster-relief distribution for
purposes of this clause, an eligible
deferred compensation plan (as defined
in section 457(b)) maintained by an
employer described in section
457(e)(1)(A) shall be treated as a
qualified retirement plan.
``(iv) Qualified disaster-relief
distribution.--For purposes of this
subparagraph, the term `qualified disaster-
relief distribution' means any distribution--
``(I) to an individual who has
sustained a loss as a result of a major
disaster declared under section 401 of
the Robert T. Stafford Disaster Relief
and Emergency Assistance Act by reason
of Hurricane Katrina and who has a
principal place of abode immediately
before the declaration in a qualified
disaster area, and
``(II) which is made during the 1-
year period beginning on the date such
declaration is made.
``(v) Qualified disaster area.--For
purposes of this subparagraph, the term
`qualified disaster area' means any area which
is determined by the President to warrant
individual or individual and public assistance
from the Federal Government under the Robert T.
Stafford Disaster Relief and Emergency
Assistance Act by reason of Hurricane
Katrina.''.
(b) Exemption of Distributions From Trustee to Trustee Transfer and
Withholding Rules.--Paragraph (4) of section 402(c) of such Code
(relating to eligible rollover distribution) is amended by striking
``and'' at the end of subparagraph (B), by striking the period at the
end of subparagraph (C) and inserting ``, and'', and by inserting at
the end the following new subparagraph:
``(D) any qualified disaster-relief distribution
(within the meaning of section 72(t)(2)(G)).''.
(c) Conforming Amendments.--
(1) Section 401(k)(2)(B)(i) of such Code is amended by
striking ``or'' at the end of subclause (III), by striking
``and'' at the end of subclause (IV) and inserting ``or'', and
by inserting after subclause (IV) the following new subclause:
``(V) the date on which a period
referred to in section
72(t)(2)(G)(iii)(II) begins (but only
to the extent provided in section
72(t)(2)(G)), and''.
(2) Section 403(b)(7)(A)(ii) of such Code is amended by
inserting ``sustains a loss as a result of a major disaster
declared under section 401 of the Robert T. Stafford Disaster
Relief and Emergency Assistance Act by reason of Hurricane
Katrina (but only to the extent provided in section
72(t)(2)(G)),'' before ``or''.
(3) Section 403(b)(11) of such Code is amended by striking
``or'' at the end of subparagraph (A), by striking the period
at the end of subparagraph (B) and inserting ``, or'', and by
inserting after subparagraph (B) the following new
subparagraph:
``(C) for distributions to which section
72(t)(2)(G) applies.''.
(d) Effective Date.--The amendments made by this section shall
apply to distributions received after August 28, 2005.
SEC. 202. INCOME AVERAGING FOR DISASTER-RELIEF DISTRIBUTIONS RELATED TO
HURRICANE KATRINA.
(a) In General.--In the case of any qualified disaster-relief
distribution (within the meaning of section 72(t)(2)(G) of the Internal
Revenue Code of 1986) from a qualified retirement plan (as defined in
section 4974(c) of such Code) to a qualified individual, unless the
taxpayer elects not to have this section apply for any taxable year,
any amount required to be included in gross income for such taxable
year shall be so included ratably over the 3-taxable year period
beginning with such taxable year.
(b) Special Rules.--
(1) Application to governmental section 457 plans.--In
determining whether any distribution is a qualified disaster-
relief distribution (as so defined) for purposes of this
section, an eligible deferred compensation plan (as defined in
section 457(b) of such Code) maintained by an employer
described in section 457(e)(1)(A) of such Code shall be treated
as a qualified retirement plan (as so defined)
(2) Certain rules to apply.--Rules similar to the rules of
subparagraph (E) of section 408A(d)(3) of such Code shall apply
for purposes of this section.
(c) Qualified Individual.--For purposes of this section, the term
``qualified individual'' means an individual who has sustained a loss
as a result of the major disaster declared under section 401 of the
Robert T. Stafford Disaster Relief and Emergency Assistance Act (42
U.S.C. 5170) by reason of Hurricane Katrina and who has a principal
place of abode immediately before the declaration in a Hurricane
Katrina disaster area.
(d) Hurricane Katrina Disaster Area.--For purposes of this section,
the term ``Hurricane Katrina disaster area'' means any area which is
determined by the President to warrant individual or individual and
public assistance from the Federal Government under the Robert T.
Stafford Disaster Relief and Emergency Assistance Act by reason of
Hurricane Katrina.
SEC. 203. RECONTRIBUTIONS OF WITHDRAWALS FOR HOME PURCHASES CANCELLED
DUE TO HURRICANE KATRINA.
(a) Recontributions.--
(1) In general.--Any individual who received a qualified
distribution may, at any time during the 6-month period
beginning on the day after the disaster declaration date, make
one or more contributions in an aggregate amount not to exceed
the amount of such qualified distribution to an eligible
retirement plan (as defined in section 402(c)(8)(B) of the
Internal Revenue Code of 1986) of which such individual is a
beneficiary and to which a rollover contribution of such
distribution could be made under section 402(c), 403(a)(4),
403(b)(8), 408(d)(3), or 457(e)(16) of such Code, as the case
may be.
(2) Treatment of repayments.--
(A) Treatment of repayments for distributions from
eligible retirement plans other than iras.--For
purposes of the Internal Revenue Code of 1986, if a
contribution is made pursuant to paragraph (1) with
respect to a qualified distribution from an eligible
retirement plan (as so defined) other than an
individual retirement plan (as defined in section
7701(a)(37) of such Code), then the taxpayer shall, to
the extent of the amount of the contribution, be
treated as having received the qualified distribution
in an eligible rollover distribution (as defined in
section 402(c)(4) of such Code) and as having
transferred the amount to the eligible retirement plan
in a direct trustee to trustee transfer within 60 days
of the distribution.
(B) Treatment of repayments for distributions from
iras.--For purposes of the Internal Revenue Code of
1986, if a contribution is made pursuant to paragraph
(1) with respect to a qualified distribution from an
individual retirement plan (as so defined), then, to
the extent of the amount of the contribution, the
qualified distribution shall be treated as a
distribution described in section 408(d)(3) of such
Code and as having been transferred to the eligible
retirement plan (as so defined) in a direct trustee to
trustee transfer within 60 days of the distribution.
(b) Definitions.--For purposes of this section--
(1) Qualified distribution.--The term ``qualified
distribution'' means any distribution--
(A) described in section 401(k)(2)(B)(i)(IV),
403(b)(7)(A)(ii), 403(b)(11)(B), 457(d)(1)(A)(iii), or
72(t)(2)(F) of the Internal Revenue Code of 1986,
(B) received after February 28, 2005, and before
August 29, 2005, and
(C) which was to be used to purchase or construct a
principal residence in a Hurricane Katrina disaster
area, but which was not so purchased or constructed.
(2) Disaster declaration date.--The term ``disaster
declaration date'' means the date on which the President
designated the area as a Hurricane Katrina disaster area.
(3) Hurricane katrina disaster area.--The term ``Hurricane
Katrina disaster area'' means any area which is determined by
the President to warrant individual or individual and public
assistance from the Federal Government under the Robert T.
Stafford Disaster Relief and Emergency Assistance Act by reason
of Hurricane Katrina.
SEC. 204. LOANS FROM QUALIFIED PLANS IN CONNECTION WITH HURRICANE
KATRINA.
(a) Increase in Limit on Loans not Treated as Distributions.--In
the case of any loan from a qualified employer plan (as defined under
section 72(p)(4) of the Internal Revenue Code of 1986) to a qualified
individual (as defined in section 202(c)) made after the date of
enactment of this Act and before the date which is 1 year after the
disaster declaration date (as defined in section 203(b)(2))--
(1) clause (i) of section 72(p)(2)(A) of such Code shall be
applied by substituting ``$100,000'' for ``$50,000'', and
(2) clause (ii) of such section shall be applied by
substituting ``the present value of the nonforfeitable accrued
benefit of the employee under the plan'' for ``one-half of the
present value of the nonforfeitable accrued benefit of the
employee under the plan''.
(b) Delay of Repayment.--In the case of a qualified individual (as
defined in section 202(c)) with an outstanding loan on or after August
26, 2005, from a qualified employer plan (as defined in section
72(p)(4) of the Internal Revenue Code of 1986)--
(1) if the due date pursuant to subparagraph (B) or (C) of
section 72(p)(2) of such Code for any repayment with respect to
such loan occurs during the period beginning after August 29,
2005, and ending before August 30, 2006, such due date shall be
delayed for 1 year,
(2) any subsequent repayments with respect to any such loan
shall be appropriately adjusted to reflect the delay in the due
date under paragraph (1) and any interest accruing during such
delay, and
(3) in determining the 5-year period and the term of a loan
under subparagraph (B) or (C) of section 72(p)(2) of such Code,
such period shall be disregarded.
SEC. 205. PROVISIONS RELATING TO PLAN AMENDMENTS.
(a) In General.--If this section applies to any plan or contract
amendment--
(1) such plan or contract shall be treated as being
operated in accordance with the terms of the plan during the
period described in subsection (b)(2)(A), and
(2) except as provided by the Secretary of the Treasury,
such plan shall not fail to meet the requirements of section
411(d)(6) of the Internal Revenue Code of 1986 and section
204(g) of the Employee Retirement Income Security Act of 1974
by reason of such amendment.
(b) Amendments to Which Section Applies.--
(1) In general.--This section shall apply to any amendment
to any plan or annuity contract which is made--
(A) pursuant to any amendment made by this title,
or pursuant to any regulation issued by the Secretary
of the Treasury or the Secretary of Labor under this
title, and
(B) on or before the last day of the first plan
year beginning on or after January 1, 2007, or such
later date as the Secretary of the Treasury may
prescribe.
In the case of a governmental plan (as defined in section
414(d) of the Internal Revenue Code of 1986), subparagraph (B)
shall be applied by substituting the date which is 2 years
after the date otherwise applied under subparagraph (B).
(2) Conditions.--This section shall not apply to any
amendment unless--
(A) during the period--
(i) beginning on the date the legislative
or regulatory amendment described in paragraph
(1)(A) takes effect (or in the case of a plan
or contract amendment not required by such
legislative or regulatory amendment, the
effective date specified by the plan), and
(ii) ending on the date described in
paragraph (1)(B) (or, if earlier, the date the
plan or contract amendment is adopted),
the plan or contract is operated as if such plan or
contract amendment were in effect; and
(B) such plan or contract amendment applies
retroactively for such period.
TITLE III--EXTENSION OF CERTAIN PROVISIONS TO FLORIDA AND OTHER
AFFECTED AREAS
SEC. 301. EXTENSION OF CERTAIN PROVISIONS TO FLORIDA AND OTHER AFFECTED
AREAS.
(a) In General.--The following provisions shall be applied as if
they did not include the phrase ``individual or individual and
public'':
(1) Section 101 of this Act (relating to extension of
replacement period for nonrecognition of gain).
(2) Section 104 of this Act (relating to exclusion of
certain cancellations of indebtedness), but only if the
discharge is on account of Hurricane Katrina.
(3) Section 105 of this Act (relating to special rules for
mortgage revenue bonds), but only with respect to residences
damaged as a result of Hurricane Katrina.
(4) Section 106 of this Act (relating to suspension of
certain limitations on personal casualty losses).
(5) Section 107 of this Act (relating to additional
exemption for housing Hurricane Katrina displaced individuals).
(6) Sections 108 and 109 of this Act (relating to special
rule for certain family related benefits), but only with
respect to individuals dislocated from their residence by
reason of Hurricane Katrina.
(7) Title II of this Act (relating to penalty free use of
retirement funds in the case of natural disasters) and section
72(t)(2)(G) of the Internal Revenue Code of 1986 (as added by
section 201 of this Act).
(b) Clarification of Scope of Provisions Relating to Charitable
Contributions.--The provisions of sections 102 and 103 shall apply to
relief efforts related to Hurricane Katrina whether or not such efforts
are carried out in an area directly impacted by Hurricane Katrina.
Passed the House of Representatives September 15, 2005.
Attest:
JEFF TRANDAHL,
Clerk.
By Gerasimos C. Vans,
Deputy Clerk.